9 Things Cannabis Investors Should Know

The swift regulatory changes taking place in the global cannabis sector are almost without modern precedent.

While some find the situation analogous to the repeal of Prohibition in the United States,Visual Capitalist's Jeff Desjardins notes that it’s also fair to point out that such events happened 85 years ago in the midst of the Great Depression. It was a long time ago, and in a very different economic climate.

Today’s infographic comes to us from Evolve ETFs, and it shows what investors should know as the legal cannabis sector comes out of the dark.

Courtesy of: Visual Capitalist

WHAT CANNABIS INVESTORS SHOULD KNOW

Since there is so much happening at once with little precedent for what such a market will look like, it’s worth summing up the sector’s potential in broad strokes:

1. Global Size
According to research from The Brightfield Group, the size of the legal cannabis sector is expected to surge from $7.7 billion to $31.4 billion between 2017 and 2021.

Currently the recreational market makes up only 37% of the global total – but by 2021, that will rise to 57%.

2. Versatile Uses
Cannabis comes in different forms. One gram of dried cannabis is roughly equivalent to:

  • 5g of fresh cannabis

  • 15g of edible product

  • 70g of liquid product

  • 0.25g of concentrates

  • 1 cannabis plant seed

These can be used in various medical applications, including to fight chronic pain, migraines, anxiety, multiple sclerosis, and nausea. Cannabis can also be used to treat Alzheimer’s, PTSD, and cancer.

3. North American Growth
By 2021, it’s estimated that North American sales will make up 86% of the global market. Specifically, the U.S. legal market is projected to hit $18.1 billion by that time, while the Canadian legal market is expected to be $8.9 billion in that same year.

4. A Shifting Legal Landscape
Canada will be the first G7 country to legalize cannabis at a federal level.

In the United States, recreational cannabis is already legalized in nine states – but this could change swiftly as various states undergo referendums.

5. European Markets
In 2017, the legal market for cannabis is estimated to be just $0.11 billion, but by 2021 it will have expanded to $3.8 billion.

According to The Brightfield Group, growth will be quite impressive in Western Europe: Germany’s market will grow at a 284% annual rate, the Netherlands at 364%, and Spain at 334%.

6. Rest of the World
Although markets outside of North America and Europe will not see the same growth in absolute dollar terms, the legal cannabis market will still expand from $80 million to $350 million, led by activity in Latin America.

7. Pharmaceutical Research
Israel has a special place in the cannabis world – the country is world leader in medical cannabis research, and industry expects that it will eventually translate into a $1 billion export opportunity. That said, export plans have hit a recent road bump.

8. Investment Activity
Compare the start of 2018 to that of 2017, and you’ll see an impressive difference in investment activity.

For this we use Canada with its impending recreational legalization as an example: in the first six weeks of 2018, investment was up nearly 7x over the previous year. Further, the average deal size increased from $5.6 million to $18.7 million.

Meanwhile, the Canadian Cannabis Index rose 201% between January 2017 and January 2018.

9. How to Invest?
There are a variety of ways to gain exposure to the sector, including:

  • Licensed producer stocks

  • Biotech stocks

  • Ancillary services stocks

  • Licensed retailer stocks

  • Cannabis ETFs

Regardless of how you play it, the legal cannabis sector is coming out of the dark – and it will be interesting to see how the industry takes shape.

Comments

a Smudge by an… DownWithYogaPants Sat, 04/14/2018 - 22:28 Permalink

Alternate list

1. Dude!

2. It's a plant right? How hard could it be!

3. Obama is on board! Green lights!

4. What do you mean the crop failed! Can't it take the test again?

5. Finally some good shit!

5. Finally some good shit man!

5. Ever notice my hands are like huge dude? I just totally noticed that man.

6. Fuck taxes!

7. Oh fuck we need someone that knows about taxes.

 

In reply to by DownWithYogaPants

algol_dog a Smudge by an… Sat, 04/14/2018 - 23:23 Permalink

Don't dispute the legality side. Just call it for what it is. A bunch of people who want to get toasted. The problem with all this stuff is the people who really need it the most, in order to break down their egos (e.g. neocons, extremists, and the like), will never touch it, while the ones who need it the least (e.g. the soft, timid and directionless) are the ones likely to engage in it.

Funny how life works ....

In reply to by a Smudge by an…

any_mouse bamawatson Sun, 04/15/2018 - 12:31 Permalink

IGFARBEN - Patented seeds, 38, via Bayer.

Big AG (Monsanto) joins Big PHARMA (IGFARBEN).

It won't be a natural weed much longer.

IGFARBEN's production plants weren't destroyed in Allied strategic bombing campaigns. Never targeted.

Even though, purportedly, the Holocaust was powered by Zyklon B.

IGFARBEN was broken up into Bayer, BASF, and others post WW2.

Bayer, BASF, and the others have been re-acquired by IGFARBEN, unopposed by any legal controlling regulatory authority.

Independent Growers using non approved heirloom seeds will be shut down.

It's the American Way.

In reply to by bamawatson

The Real Tony stocktivity Sun, 04/15/2018 - 16:16 Permalink

The real smart money is shorting all the marijuana stocks knowing virtually all of them will go to zero and the ones that survive will see a 70 to 99 percent haircut in price. This is the greatest opportunity to short stocks this century and these idiots are talking about buying them instead of getting wealthy shorting these companies.

In reply to by stocktivity

sabaj49 freedogger Sun, 04/15/2018 - 10:54 Permalink

reason feds haven't made it legal is that BIG PHARMA(you know the big $$ monopoly) isn't having it

they still control corrupt congress with their 1% $$$$

funny how DUPONT got congress to make it illegal back in 50's when he couldn't sell his nylon rope because cannibas rope is SO MUCH STRONGER AND BETTER

 

of course that 'weed' isn't worth smoking

but today's weed has all the right science to make it worth while

In reply to by freedogger

any_mouse sabaj49 Sun, 04/15/2018 - 12:37 Permalink

Earlier. Hearst Newspapers also was a major supplier of wood pulp paper.

Paper created from killing live trees and creating a pulp that was pickled and becomes paper. Horrible smell in the area surrounding the pulp mill.

Hemp paper was better and came from living plants that did not have to die to produce the paper.

Hearst through the media control ran a propaganda campaign on the evils of cannabis.

In reply to by sabaj49

wildbad DownWithYogaPants Sun, 04/15/2018 - 02:56 Permalink

I used to think that the med marijuana meme was just a way to get high legally.  Cannabis does IN FACT cure many diseases and its industrial uses are in the thousands.

Do a little research on the "endocannabinoid system".  You will find that it is a burgeoning research sector andwill be the basis for an entirely new direction in medicine.  The chemical parallels between the cannabinoids in Cannabis and the endocannabinoids in humans is remarkable.  Look up RSO or Rick SImpson Oil on youtube.  

It is also used as a palliative much more successfullly and without the side effects of pharma.  Glaucoma, MS and a hundred other disease symptoms can be reduced with cannabis and the studies are just starting to be sanctioned, approved and legal so you can await a VERY bright future in the direction of cancer paliative medicine if not outright cure.

In reply to by DownWithYogaPants

Byte Me wildbad Sun, 04/15/2018 - 07:34 Permalink

Currently the recreational market makes up only 37% of the global total – but by 2021, that will rise to 57%.

Unfortunately, I need to inform prospective investors that I shied away from this particular form of mindrot in the late 90s.

Good luck.

Happy buzzes.

NJOI.

PS

Grow up.

PPS More distraction...

In reply to by wildbad

MoralsAreEssential wildbad Sun, 04/15/2018 - 10:47 Permalink

Trying to look up a source. I live in a no MJ state.  Many warnings about fake products.  What about Endoca as a source? Severe depression is a "family" illness for me.  I stopped using antidepressant about one year ago.  I am fairly desperate at this point just to not feel despair 24/7.  Thanks to anyone for info on an honest source.  

In reply to by wildbad

zibrus MoralsAreEssential Sun, 04/15/2018 - 11:34 Permalink

Fly to Seattle for a nice vacation. Buy as much as you need and put it in your suitcase. Fly back to your state. WA doesn't care or check for the export of MJ even through airports. Obviously within reasonable limits. Talk to locals and shop suppliers about your specific needs.

 

CBD is a cannabinoid product that is very common. It is non-psychoactive, but still has the cannabinoid health/healing benefits and indeed, helps with a depressive mind state. CBD regulates THC so typical products are about 1:5 THC to CBD. You won't get high, but it will help with anxiety.

In reply to by MoralsAreEssential

jin187 wildbad Sun, 04/15/2018 - 12:04 Permalink

Cannabinoids have been shown as a treatment for symptoms of a number of diseases, not cannabis, or more specifically, THC.  Just like hemp is good for manufacturing.  You can do both through processing, and create products that have all the benefits of smoking dried weed, concentrates, or dabs, but won't get you high.  Since nearly everyone that chooses to use it does so in a way that gets them high, and nearly everyone that sells it does so in forms that will get you the best high, the logical conclusion is that people just wanna get high.  That stat of about a 60/40 balance in recreational to medical use is also bullshit.  Everyone I know with a medical card went to the doctor just to get one rubberstamped so they could get high.  It's probably more like 90/10, or even 97/3.

In reply to by wildbad

any_mouse jin187 Sun, 04/15/2018 - 12:48 Permalink

High, stoned, whatever. Vaguely suicidal. Temporarily checked out and off planet.

The manufactured opioid "crisis" should tell you that people can't handle the "reality" created for them.

MJ will be legal when crony Corporations have the tools to make billions off the corporate created misery of citizens.

In reply to by jin187

bluskyes DownWithYogaPants Sun, 04/15/2018 - 09:25 Permalink

I know a woman who had inoperable cancer in her abdomen, that had paralyzed her. She had already been through multuple rounds of chemo, and was given 4 months. She rejected any further chemo

 

She started using marijuana, and the tumour disappeared. She regained full use of her legs again, and now leads a normal life.

 

In reply to by DownWithYogaPants

a Smudge by an… DownWithYogaPants Sun, 04/15/2018 - 00:55 Permalink

Know what just pisses me off about this whole conversation? Whoa, hey there, what's my name Skip? Sorry just plug that cherry hooter right in there here pie ho...

 

ho ho ho ho (cough) ho hooooo doggie!

 

So like I was saying like....oh wow man...like....do you hear music?

 

Are you guys feeling pizza? Oh man I am so totally munchable.

In reply to by DownWithYogaPants

Pop3y3too Sat, 04/14/2018 - 22:28 Permalink

"The swift regulatory changes taking place in the global cannabis sector are almost without modern precedent."

 

Dope and cryptos. A brave new regulatory world.

rosiescenario Pop3y3too Sun, 04/15/2018 - 16:34 Permalink

In CA they have put so many local and state taxes on it (not to mention paying the IRS, ironically) that it is more profitable to not conform with the law. In its best bureaucratic fashion the state of CA has also created a byzantine set of regulations dealing with growing, transporting, and dispensing. Since there have been no court rulings yet, no one actually understands how the rules really apply.

In reply to by Pop3y3too

Tom Green Swedish Sat, 04/14/2018 - 22:34 Permalink

Another shitpost. Weed is for loser simians thugs so they can make rap music and act like somebody gives a shit. Shit drug makes people retarded. Feel free to downvote USA conspiracy theory opposite backwards ass fight club treason military bashing bigot inferiority complex faggot retards. 31 billion is chump change. About as much as you chinese loving plastic crap lazy internet self righeous pigs blow on commie crap once a month. Go crazy fucks!